Pandora Is Paying Out $0.0001 More Per Stream Than It Was Last Year

Pandora has revealed that its royalty payments to SoundExchange, the US licensing body which collects performance royalties on behalf of record labels and artists, have just increased by 8%.

The news was confirmed in a call with investors following Pandora’s Q1 fiscal results announcement on Thursday (April 23), in which it posted a three-month net loss of $48.3m.

In what Pandora CEO Brian McAndrews (pictured) called a “scheduled annual step-up”, Pandora has from January 1 been paying out an average $0.0014 per ad-funded stream and $0.0024 per premium stream to SoundExchange.

An 8% rise in SoundExchange royalties might sound impressive, but in per-stream terms, it’s a micro-increase: up $0.0001 from $0.0013 (ad-funded) and $0.0023 (premium) in 2014.

In Q1 2015, Pandora pulled in $52m in subscription income, down on the $53.7m it accrued in the same period of 2014.

Via Music Business Worldwide